Intercos (ICOS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales reached €250.8 million, up 13.4% year-over-year, with all regions posting double-digit growth and Make-up accounting for over 60% of group sales.

• Adjusted EBITDA rose 40.6% to €29.3 million, with margin improving by 225 basis points to 11.7%.

• Multinational clients, especially in the prestige segment, drove growth (+28%), while retailers rebounded (+16%) and emerging brands were flat after strong prior growth.

• Growth was led by the Make-up category (+23.2%), with Hair & Body also contributing; Skincare declined due to tough comps but is expected to recover.

• Net debt as of March 31, 2025, was €126.9 million, with leverage at 0.84x LTM Adjusted EBITDA, reflecting ongoing expansion plans.

Financial highlights

• Net sales increased by €29.7 million year-over-year, with Make-up as the main growth driver.

• Adjusted EBITDA for Q1 2025 was €29.3 million, up from €20.8 million in Q1 2024, with margin at 11.7%.

• Net debt increased slightly due to capital expenditures for plant expansion, but leverage remains well below 1x.

• On a rolling 12-month basis, EBITDA surpassed €150 million for the first time.

• Net financial position stood at €126.9 million, or €84.4 million excluding IFRS 16 impact.

Outlook and guidance

• Guidance for full-year 2025 confirmed: net sales expected to grow 5–7% over 2024 at constant FX rates.

• Confident in recovery of skincare in the remainder of the year, supported by innovation and new projects.

• Margin expansion expected for the full year, though Q2 may be challenging due to tariffs and market volatility.

• Productivity enhancement projects and innovation initiatives are ongoing, with greater impact expected in the second half.

• Order intake trends remain robust, with strong customer interest in new products.